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APPLE’S MOTION FOR ONGOING ROYALTIES C

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JOSH A. KREVITT (CA SBN 208552) jkrevitt@gibsondunn.com H. MARK LYON (CA SBN 162061) mlyon@gibsondunn.com GIBSON, DUNN & CRUTCHER LLP 1881 Page Mill Road Palo Alto, CA 94304-1211 Telephone: (650) 849-5300 Facsimile: (650) 849-5333 HAROLD J. McELHINNY (CA SBN 66781) hmcelhinny@mofo.com JAMES P. BENNETT (CA SBN 65179) jbennett@mofo.com JACK W. LONDEN (CA SBN 85776) jlonden@mofo.com RACHEL KREVANS (CA SBN 116421) rkrevans@mofo.com RUTH N. BORENSTEIN (CA SBN 133797) rborenstein@mofo.com ERIK J. OLSON (CA SBN 175815) ejolson@mofo.com MORRISON & FOERSTER

LLP

425 Market Street San Francisco, California 94105-2482 Telephone: (415) 268-7000 Facsimile: (415) 268-7522 Attorneys for Plaintiff and Counterclaim-Defendant APPLE INC.WILLIAM F. LEE william.lee@wilmerhale.com WILMER CUTLER PICKERING HALE AND DORR LLP 60 State Street Boston, MA 02109 Telephone: (617) 526-6000 Facsimile: (617) 526-5000 MARK D. SELWYN (SBN 244180) mark.selwyn@wilmerhale.com WILMER CUTLER PICKERING HALE AND DORR LLP 950 Page Mill Road Palo Alto, California 94304 Telephone: (650) 858-6000 Facsimile: (650) 858-6100 UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION APPLE INC., a California corporation,Plaintiff, v. SAMSUNG ELECTRONICS CO., LTD., a Korean corporation; SAMSUNG ELECTRONICS AMERICA, INC., a New York corporation; and SAMSUNG TELECOMMUNICATIONS AMERICA, LLC, a Delaware limited liability company, Defendant. CaseNo.12-cv-00630-LHK (PSG)

APPLE’S MOTION FOR ONGOING ROYALTIES

Date: December 18, 2014 Time: 1:30 p.m. Place: Courtroom 8, 4th Floor Judge: Hon. Lucy H. Koh

Case5:12-cv-00630-LHK Document1958 Filed09/03/14 Page1 of 7

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NOTICE OF MOTION

TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD: PLEASE TAKE NOTICE that on December 18, 2014, at 1:30 p.m., or as soon as the matter may be heard by the Honorable Lucy H. Koh in Courtroom 8, United States District Court for the Northern District of California, Robert F. Peckham Federal Building, 280 South 1st Street, San Jose, CA 95113, Plaintiff Apple Inc. (“Apple”) shall and hereby does move for an ongoing royalty under

Paice LLC v. Toyota Motor Corp.

, 504 F.3d 1293, 1317 (Fed. Cir. 2007) in light of the Court’s denial of Apple’s request for a permanent injunction. (Dkt. 1953.) This motion is based on this notice of motion and supporting memorandum, the trial and post-trial record, and such other written or oral argument as was presented and may be presented at or before the time this motion is taken under submission by the Court.

RELIEF REQUESTED

Apple respectfully requests an order: (1) granting Apple an ongoing

Paice

royalty, in an amount to be determined, to partially compensate for any ongoing and future infringement of Apple’s patents based on infringing sales of Samsung products that the jury found to infringe, as well as products not more than colorably different therefrom, and (2) setting an orderly briefing schedule and, if necessary, a hearing to determine the amount of the ongoing

Paice

royalty. Dated: September 3, 2014 MORRISON & FOERSTER

LLP

By:

/s/ Rachel Krevans

RACHEL KREVANS Attorneys for Plaintiff and Counterclaim-Defendant APPLE INC.


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I.

INTRODUCTION

On August 27, 2014, the Court denied Apple’s motion for a permanent injunction. (Dkt. 1953.) In light of the Court’s ruling, Apple now moves for an order: (1) requiring Samsung to pay royalties under

Paice

for ongoing and future infringing sales of Samsung products that the jury found to infringe, as well as Samsung products not more than colorably different therefrom (

see

Dkt. 1884 at 2-6, 9), and (2) setting a briefing schedule and, if necessary, a hearing to determine the appropriate amount of the ongoing royalty. While Apple believes that it has been and continues to be irreparably harmed by Samsung’s infringement and that only injunctive relief would suffice to remedy that harm — and Apple will urge that position before the Federal Circuit — Apple is, at the very least, entitled to the partial remedy of an ongoing royalty under

Paice

given the Court’s denial of injunctive relief. The law is clear that when a court denies a permanent injunction an ongoing royalty is appropriate to compensate, at least in part, for ongoing and future infringing sales.

Paice LLC v. Toyota Motor Corp.

, 504 F.3d 1293, 1315 (Fed. Cir. 2007) (“

Paice

I

”). As with injunctive relief, any ongoing royalties extend not only to ongoing sales of products found to infringe by the jury, but also to products “not more than colorably different” therefrom.

E.g.

,

I/P Engine, Inc. v. AOL Inc.

, No. 2:11cv512, 2014 U.S. Dist. LEXIS 7876, at *9-11 (E.D. Va. Jan. 21, 2014) (applying ongoing royalty to adjudicated product and any new products “not more than colorably different”);

see also

Dkt. 1953 at 38:23-24 (Order Denying Apple’s Motion for Permanent Injunction) (“However, the ‘not more than colorably different’ provision is standard in injunctions.

”)

. To determine the appropriate rate for an ongoing royalty, Apple proposes an orderly briefing schedule as set forth in Section III.B below.

II.

ARGUMENT A.

Apple Is Entitled To Ongoing Royalties Under

Paice

Given The Court’s Denial Of Apple’s Motion For Permanent Injunction

In the absence of an injunction, a patentee is entitled to receive ongoing royalties to compensate him, at least in part, for the loss of his lawful right to exclude others from profiting
